Cottage Grove council adopts $3.1 million Hidden Valley street reconstruction, sets assessments for homeowners

The Cottage Grove City Council on Oct. 15 adopted the assessment and final cost for the 2025 pavement management reconstruction in the Hidden Valley neighborhood, approving a $3,098,440.97 project and an assessment program for affected properties.

The measure formalizes financing that the city said uses a mix of utility funds, park and trail funds and the general levy, with assessments covering about 45% of the project’s street costs for assessable residential building-lot equivalents (RBLEs). The city reported total assessments of $1,216,814.40 and an average final assessment of $5,313.60 per assessed property after construction.

Crystal Raleigh, assistant city engineer, told the council that the project reconstructed neighborhood streets built between 1986 and about 2005, replaced or repaired curb in several places, adjusted median noses to be plow-friendly, and addressed areas of significant cracking. She outlined coordination issues with a concurrent Gateway Fiber installation that delayed final restoration work.

Raleigh said utility funds will cover about 55% of water/sewer/utility-related repairs and the remaining 45% will be assessed to property owners. She said the project’s benefit appraisal range supported the adopted assessments and the final average assessment came in about $1,000 lower than the city’s prior estimate.

Under the adopted assessment terms, property owners who choose a 15-year payment plan would pay an average annual amount of $488.08. Property owners have 30 days from the hearing date to pay in full without interest (the council set Nov. 14 as the 30-day cutoff). Partial payments over $500 also avoid interest; otherwise unpaid balances may be financed at 4.6% (described by staff as 1.5% above the city’s bond rate). Deferral options are available for qualified residents, including disabled property owners, active military and owners 65 or older; interest accrues during any deferral period.

Councilmembers asked about yard and driveway restoration after construction and how the city would handle repairs related to the separate fiber installation. Raleigh said most curb restoration near streets was complete and that Gateway’s restoration related to fiber remains ongoing; the city will not accept final contractor closeout until restoration is satisfactory and staff will continue working with property owners into spring if grass does not establish.

Mayor Myron Bailey and councilmembers voted to adopt Resolution No. 2025-154, formally adopting the assessment for the 2025 pavement management project.

Residents with questions were told the city will send letters to affected homeowners with payment options and contact information for finance staff.

The council’s action completes the financing step for the reconstruction work in Hidden Valley and assigns the assessment obligations and payment timelines that property owners must follow.